22/11/2013

Download Subtitles

Transcript

:00:00. > :00:00.have been protesting against pension and pay cuts. Time for World

:00:00. > :00:24.Business Report. Reward for success, or shameful

:00:25. > :00:28.access? We will look at the growing debate over executive pay as

:00:29. > :00:34.Switzerland prepares to put it to the vote. Plus, 16000 and counting.

:00:35. > :00:47.A new record close puts the Dow Jones on track for its best year in

:00:48. > :00:52.a decade. A fascinating and exciting snapshot of all the latest in the

:00:53. > :01:04.world of business and money. Also in the programme, PlayStation for all

:01:05. > :01:10.XBox One? `` PlayStation four, or XBox One. What should top bosses get

:01:11. > :01:14.paid? It is a major source of debate all around the world, but in

:01:15. > :01:21.Switzerland they are putting it to the vote. A referendum on Sunday

:01:22. > :01:27.that will ask the Swiss people whether corporate bosses should have

:01:28. > :02:28.their pay capped to 12 times that of their lowest paid workers.

:02:29. > :02:41.There you go, our rules on executive pay fairer for society, or just bad

:02:42. > :02:47.for business? Handcrafted goods. Kitchens and

:02:48. > :02:54.furniture. A small business, but its products are sold on four

:02:55. > :02:58.continents. The company director earns just 1.3 times what his staff

:02:59. > :03:07.learn. He will be voting yes to the new law. TRANSLATION: We have to

:03:08. > :03:15.concentrate on creating good products, that is our strength, not

:03:16. > :03:21.exorbitant salaries. I am part of the Swiss tradition of social

:03:22. > :03:25.responsibility. It is a long way from the multimillion dollar

:03:26. > :03:32.salaries of the big banks. It was voted in March to cut executive pay.

:03:33. > :03:38.It will affect every business in Switzerland. Small businesses like

:03:39. > :03:42.this are scattered across Switzerland, in fact these are the

:03:43. > :03:50.true backburner of the Swiss economy.

:03:51. > :03:58.This company makes electric bicycles. Perfect for those steep

:03:59. > :04:02.Swiss mountain roads. People here worry that government`controlled

:04:03. > :04:07.salary restrictions could turn a successful business into one that is

:04:08. > :04:13.going downhill. No huge payback is here, either. Management are no more

:04:14. > :04:25.than five times the salary of the lowest paid. `` earned. But there is

:04:26. > :04:34.opposition to the law. It is viewed as potentially costly government

:04:35. > :04:40.interference. We have a one /5 rule. We prefer to invest our money and

:04:41. > :04:48.our staff to create business, to create new products, new markets,

:04:49. > :04:58.and the new sales. Not into the accounting department, et cetera.

:04:59. > :05:06.Two companies, two opposing views. Whichever way this vote goes, the

:05:07. > :05:15.really high earners in Switzerland are being warned: stop being so

:05:16. > :05:17.greedy. Let's turn our attention to Wall

:05:18. > :05:21.Street, where there was a lot of excitement on Thursday. He reached

:05:22. > :05:32.the number that got everybody so worked up. That was the close on the

:05:33. > :05:38.Dow Jones industrial average, the first time it has ever closed above

:05:39. > :05:43.16,000. It is up 22% this year, and if it holds on these levels, or

:05:44. > :05:47.certainly to the levels to the end of this year, it will be the best

:05:48. > :05:53.annual performance for the Dow Jones in a decade. To put that in

:05:54. > :06:00.perspective, look at this number. It is up 220% from the low in its post`

:06:01. > :06:07.crisis blew in 2009. Did the excitement in Wall Street go over to

:06:08. > :06:11.Asia? Great to see you, the big question continues to be for the

:06:12. > :06:19.markets, will the US Central Bank start pulling back? That is the big

:06:20. > :06:25.question isn't it? How many times can we actually ask this question.

:06:26. > :06:29.You are not wrong, every little bit of information, and investors are

:06:30. > :06:32.constantly looking for clues. We all want the Fed to do something, so we

:06:33. > :06:37.can stop trying to read the tea leaves. That 16,000 level on the Dow

:06:38. > :06:40.Jones had a lot to do with the latest numbers on the economy out of

:06:41. > :06:44.the US, including some pretty encouraging news on the job market.

:06:45. > :06:48.Applications for unemployment benefits dropped to their lowest

:06:49. > :06:54.level since them. Investors worried about tapering were balanced out, as

:06:55. > :06:58.they felt more comfortable with where the US economy and the market

:06:59. > :07:05.is going. In terms of where I am, here in Asia, the Nikkei scaled a

:07:06. > :07:15.six`month high in Japan, and once again it was a currency story. The

:07:16. > :07:18.weak yen drove up exports. Other markets in the region are higher,

:07:19. > :07:28.but they have been a lot more subdued than Tokyo and Wall Street.

:07:29. > :07:32.In Japan, where are `` while we are all thinking about tapering, the

:07:33. > :07:42.bank of Japan has given its blessing to the lower yen, saying it is not

:07:43. > :07:48.too weak. Speak to you very soon. Let's have a look. These are the

:07:49. > :07:54.scenes in London just a few hours ago, and of course it is the latest

:07:55. > :08:01.Microsoft Xbox. The XBox One went on sale at midnight around the world,

:08:02. > :08:15.and I was covering this yesterday. It sets up a massive battle with

:08:16. > :08:19.Sony's rival games console. It is the battle for the living

:08:20. > :08:22.room, with two technology giants going head`to`head with the latest

:08:23. > :08:33.videogame consoles. Last night sought Microsoft's XBox One go on

:08:34. > :08:41.sale, with Sony's PlayStation four going on sale next week. The motion

:08:42. > :08:48.sensor and camera have to be purchased separately. The XBox One

:08:49. > :08:59.has the same processor, the same RAM, and a higher retail price. But

:09:00. > :09:04.it's motion sensor and camera are bundled with it. I didn't think

:09:05. > :09:07.there will be one winner. I think there will be two winners, maybe

:09:08. > :09:15.even three. Nintendo can't be written off. Opinion on which is the

:09:16. > :09:27.better console is very divided. I've always been a PS four fan. I have

:09:28. > :09:37.always had a PlayStation. Sony launched the PlayStation in America

:09:38. > :09:46.last Friday, and sold over 2 million units in four hours. That is a

:09:47. > :09:50.record. We will keep across that

:09:51. > :09:56.competition. Let me touch on this before ago, a jury in silicon valley

:09:57. > :10:04.has ordered Samsung to pay 290 million dollars for copying elements

:10:05. > :10:09.of the iPhone and iPad. This is just an ongoing battle between the two

:10:10. > :10:12.rivals. This is in addition to the 500 million the Korean company owes

:10:13. > :10:18.Apple as a result of the initial verdict. Samsung is expected to

:10:19. > :10:25.appeal. The lawyers are making a lot of money, aren't they? I will be

:10:26. > :10:27.back shortly with Daniela, to take a look at some of the newspapers from

:10:28. > :10:45.around the world. You may think that your head is

:10:46. > :10:49.something that is completely individual, but a team of that

:10:50. > :10:51.artists are try to work out what is normal when it comes to the cranium.

:10:52. > :10:52.They hope